A private equity firm has introduced a sophisticated data analytics and artificial intelligence platform to pinpoint new investment opportunities.
NorthEdge Capital, operating from Birmingham, Leeds, and headquartered in Manchester, oversees over £650m in private equity funds aimed at the North of England and Midlands regions. This initiative seeks to streamline their buy-out and development capital transactions.
This innovative effort is a collaboration with a Manchester-based AI developer. Peak, founded in 2014, has rapidly expanded to a team of 57, with offices in Manchester, Jaipur, London, Brisbane, and Edinburgh. Peak’s algorithms, machine learning, and deep learning technologies will support NorthEdge’s investment processes. The firm continues its pursuit of growth and development capital, management buyouts, equity release, and buy-and-build opportunities across its targeted areas.
“There are so many facts to validate that AI-powered businesses are excelling away from the pack, and the use of AI for deal origination at NorthEdge is an extremely exciting example of that,” stated Richard Potter, co-founder and CEO of Peak. “The results we have seen to date have the potential to transform the private equity industry as we know it, and we’re looking forward to watching this develop in the coming months.”
NorthEdge, a prominent investor in the North of England, has had an active 2018, investing £75m to date and raising a £120m fund to complement its main fund of £315m.
“We are constantly seeking new methods of building on our entrepreneurial approach to drive value,” said Ray Stenton, Partner and Head of New Business at NorthEdge Capital. “Machine learning is set to revolutionise deal origination at NorthEdge, and by working collaboratively with Peak we are building a stronger picture of our market size, demographics and the key drivers for investment opportunities.
Artificial intelligence will help to automate and drive efficiency for our Origination Team to find outstanding teams who want to engage with an entrepreneurial, and importantly, local private equity firm, to unlock real value for all stakeholders. With more data, we can make better decisions which means a better outcome both for NorthEdge and our investors.”
The deployment of AI and machine learning signifies a forward-thinking approach by NorthEdge Capital, enhancing their investment strategy and decision-making processes significantly.